The company's share price has surged significantly amid global tech shifts, outpacing competitors like Microsoft and Apple. This milestone underscores Nvidia's pivotal role in the AI revolution, with substantial revenue growth in data centres fueling its market dominance.
Jensen Huang-led US based chipmaker Nvidia has become the first public company in the world to hit a $4 trillion market capitalisation, thanks to a consistent rise in its share price due to high demand for its state-of-the-art chips and AI technologies.
As the US market opened on Wednesday, Nvidia's shares surged 2.5% to hit an all-time high of $164 from its previous session close of $160. Despite uncertainty caused by US President Donald Trump's tariff war, Nvidia's share price has risen 6.7% in the past five days on Nasdaq, while its one-month and six-month gains stand at 14.42% and 20.08%, respectively. In the year-to-date period so far, the stock has surged 18%.
The chips of Nvidia, the top designer of discrete graphics processing units, are used in a variety of end markets, including high-end PCs for AI tech, gaming, data centres, and automotive infotainment systems.
Nividia's stock rally has continued despite hiccups earlier this year, when Chinese low-cost AI model DeepSeek made waves by outperforming several Western counterparts on key benchmarks, shaking investor confidence in some of the leading companies operating in the AI space.
Nvidia hit a $1 trillion market cap for the first time in June 2023. As the world embraced AI, its market capitalisation tripled in about a year. The only two other public companies with over $3 trillion market capitalisation are Apple and Microsoft.
Closely following Nvidia, Microsoft has a market capitalisation of $3.75 trillion. Its shares are also up 19.61% this calendar year, with 5.87% gains in the past month. Apple's share has slipped about 14.84% this year, due to slowing iPhone sales, increasing competition, and regulatory pressures in key markets.
Nvidia also has the highest weight in the S&P 500 index at 7.3%, followed by Apple (7%) and Microsoft (6%).
In the first quarter of FY2026, Nvidia reported revenue of $44.1 billion, up 12% from the previous quarter and up 69% from a year ago. Of this, data centre revenue stood at $39.1 billion, up 10% from Q4 and up 73% from a year ago. For the second quarter as well, Nvidia expects revenue worth $45 billion, plus or minus 2%.
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